Quick information: Excise tax on self-consumption in foreign car leasing is illegal under EU law

On December 21, 2006, the European Commission demanded that Austria adapt the regulation in place until the end of 2007 under § 1, paragraph 1, item 2b of the UStG to EU law, because it is not in compliance with EU law. This threatens Austria with a lawsuit by the Commission before the European Court of Justice for failure to deduct the sales tax collected as input tax. This was already pointed out in the client information in October 2005 that the UFS-Linz had classified this law as being in breach of EU law on March 1, 2005. This increases the chance of success in enforcement for the VAT exemption for car foreign leasing.

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